REINFORCE ACCOUNTABILITY IN THE BUDGETING PROCESS
Finance is what keeps the business moving. So, it won’t be wrong if we call the budgeting process the lifeline of a business. This process is way of allocating the company’s finances. The company can outline the financial and organizational goals in this budgeting process. The importance of this process makes it vital for the company to comprehensively define the needs of the company, ways to meet these needs and ascertain who will be responsible for meeting these needs. Accountability, clarity & transparency should be distinctive features of an organization’s budgeting process.
When we link strategic planning & performance measurement to the budgeting process, we are intended to create a strong system of accountability. Here the accountability integrates the basic elements like planning, budgeting, implementation and evaluation. When the concept of account is expanded along with the enhancement of oversight of account the payoff is strengthened accountability. Along with the traditional measures f monetary resources when account encompasses organization’s purpose, direction and impact, the said system evolves.
Now the question arises how to bring transparency and accountability in the budgeting process?
Nowadays nearly all forward-thinking organizations make use of corporate budgeting software to strengthen accountability and transparency in the budgeting process. This intelligent software facilitates the company stakeholders to monitor and track the cash flow of the company. It helps in almost all financial processes like data analysis, excel analysis, excel modelling, financial analysis, accounting, taxation, budgeting, financial forecasting and business planning as well. This software generates multiple reports which is helpful for the management for future investment.
The budget management software helps in the audit of the business finances depicting whether the finances were utilised to facilitate the needs of the company. It accurately summarises the profits, the losses and the liabilities of the organization. This software judiciously stores all he company data in correct form and ensures the stakeholders that the finances of the company are aptly distributed and satisfactorily spent.
Most of the software are cloud based these days which makes them more significant as it brings down the whole cost of the financial system of the company as purchasing/developing and maintaining of this is a lower cost affair. Moreover, there is ample control and transparency measures incorporated in them as well. Once we start using them it ensures that the budget planning software transparently reflects the flow of the company finances.
Supplementary elements of budget management software also include analysis of the financial set up of the business. They offer budgetary understandings into consideration of the business trend as shown in the data input of the software. This software empowers all the stakeholders of the company to look into how profitable various business projects are and which investments should be reviewed by the company.
The developer should ensure that this software is user friendly, stores the data securely and provides error free accounting of the company’s ventures. This should also provide financial and commercial insights to the stakeholders as and when required. The user-specific dashboards should be sleek and of modern view for convenient use. It should also have restricted access to certain features or should entail management approval prior to making changes or transactions to maintain low risk and error.
Business Management software is an outstanding tool that not only supports accountants in their assignments in the company, it also bolsters the accountability and transparency in the budgeting process.